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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI, JM & SHRI S.R. RAGHUNATHA
O R D E R
PER MANU KUMAR GIRI (Judicial Member ) This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)[CIT(A)] Chennai-19 dated 21.02.2024 for Assessment Year 2021-22.
Assessee is an individual and has filed the return of income. A search was conducted in the case of Kallal group on 11.03.2021. During assessment
- 2 - proceedings assessee failed to explain sources for the expenditure, loan, investment etc.. Therefore, the AO has passed order under section 144 of the Income Tax Act, 1961 (In short ‘Act’) dated 27.09.2022 and made various additions and assessed the income at Rs.81,58,86,115/- which includes unexplained expenditure, unexplained cash, unexplained loan, unexplained investment in gold jewellery and silvers items and income from other sources.
Further, the appellant filed the appeal against the order under section 144 of the Act dated 27.09.2022 before the Ld. CIT(A) wherein the assessee did not appear before the first appeal authority. Accordingly, the assessment was confirmed on merits against which assessee is in further appeal before us.
At the outset, Ld. Counsel for the appellant submitted that Ld. CIT(A) had not followed the principles of natural justice. Ld. Counsel for the appellant further prayed that if an adequate opportunity of hearing is given to appellant, appellant would prosecute its case properly before the Ld. CIT(A). The Ld. Sr. DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the ld. first appellate authority.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice we deem it fit to grant another opportunity of hearing to the assessee. We also find that a detailed reply was filed before the ld.CIT(A), however the same was not at all dealt by the ld.CIT(A) on merits. Accordingly, the impugned order is set aside and the - 3 - appeal is restored back to the file of Ld. CIT(A) for adjudication on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits.
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on 26th day of June, 2024 at Chennai.